Canandaigua National bulks up investment arm

Canandaigua National Bank & Trust Co. looks to nearly double its assets on the trust side of its business.

With the acquisition of Genesee Valley Trust Co., announced Monday, CNB will add $590 million to its assets under management for a total of $1.5 billion.

Genesee Valley Trust operates out of a single office at 1221 Pittsford-Victor Road in Pittsford. As a trust company, GVT does not function as would a normal bank, according to CNB President and CEO George Hamlin.

Founded by the Feinbloom family about 15 years ago, GVT has mostly managed investment accounts such as employee 401(k) plans.

"They are investment managers for employees, charitable (organizations) and folks with high net worth," said Hamlin. "It's not a bank. It's an investment office."

CNB will not add any branches to its current cadre of 21 in Ontario and Monroe counties, nor will GVT change its name or change its staff. GVT will operate as a "wholly owned subsidiary" of Canandaigua National Corp., the parent company of CNB.

"You don't mess with something that is working really well," said Hamlin of both companies. "The only difference is that we're the sole shareholder."

GVT President and CEO James D'Amico, who will retain his position, shares Hamlin's enthusiasm over the acquisition.

"As part of CNB, Genesee Valley Trust can offer a significantly broader range of services to clients," said D'Amico in a released statement. "We are proud to be joining an organization that is committed to offering its clients the kind of personalized service that builds long-lasting relationships."

Hamlin would not comment on how much CNB paid to buy out the 30-odd shareholders of GVT stock, saying instead that the acquisition is part of a "complex structure" whose nominal value fluctuates over the course of a few years before the actual purchase price is fixed and the deal is concluded.

"It just depends," said Hamlin of any further plans for expansion and acquisition. "Whenever things line up with our strategic plan, we can either grow organically, one leaf at a time, or we can pick up a few cardboard boxes of leaves."

In October 2006, Canandaigua National Bank announced the final purchase of trust operations from Financial Institutions Inc., the parent company of Five Star Bank. At the time, the Five Star trust division had approximately $69 million in assets held in fiduciary or agency capacities.

Philip Anselmo can be reached at (585) 394-0770, Ext. 322, or at panselmo@mpnewspapers.com.